Two Different Business Models

A good business model can help to articulate value proposition and also define cost structure of and profit potential. This mini report tends to analyze two different models.

Subscription model: In this business model, customers need to pay a subscription fee for content services. This model is widely used by websites. A subscription sells service or products periodically such as monthly, seasonal or yearly. Membership fees are necessary to some organizations, like trade unions. Basically, subscription model has so many positive impact for example flexibility, ability to scale, stronger relationships. There are also some examples: The Ladders, Yahoo.

Utility Model: It can protect inventions’ intellectual property. This is used in many countries. This model bring some advantages, such as 1. You can get a right earlier than patent; 2 you can get a right with lower cost than patent. There are two examples for Utility Model: Skype and Software License-per-Seat Model)

Conclusively, different business model has different benefits. Different business need different model to operate.